With the changing lifestyle of the people and the growing inflation there is always need of extra money apart from one’s salary to maintain sudden financial ups and downs in one’s life.
From bearing expense of any medical emergency to buy a new gadget/ machine, to financing your child’s education and wedding or gifting something expensive to your near and dear ones on their special occasion or to renovate your house or to finance your children higher education you need a funds. But it is not necessary that whenever we need money, we would have enough of it. For situations like these Personal Loans are the best option by which you can finance all your expenses.
Why Personal Loans?
Personal loan is the one which is unsecured in nature. No collateral or any kind of security is required to give against your loan. This means for you there is no risk factor involved as compared to other loans where a collateral is needed. Generally in other loan where a collateral is needed these is usually a risk factor involved. In case if you default in your repayments or in case if you are unable to repay the amount the lender has full authority to take over the ownership of the property which you have given as the collateral. But in personal loan there is no such risk. In fact here the lenders are at more risk as compared to that of the borrowers.
Apart from this Personal Loan there are multiple options available to fund you needs and requirements which includes loan from family members or friends, Credit Card Loan, loan against property/Mortgage Loan, Equity Loans and your savings which you have kept in form of mutual funds, fixed deposits, insurance or gold. However, Personal Loan is different from all these alternatives due to many reasons.
Unique Features of Personal Loan which make it Favorite option for Financing
Easy to Avail
Personal Loan is generally offered by most of the top banks. The loan is easy to avail and comes with affordable interest rate. Many banks are now offering a complete online Personal Loan through which you can get the loan amount within few minute or hours. The process is completely online including the documentation part. You can enjoy this loan in a complete hassle free and smooth way.
No Security/Collateral Required
In case of Personal Loan no security or any collateral is required. This point makes it favourable even for those people who can’t give any collateral against their loan. Even if for those people who have collateral makes this a risky business. So, many of the common people go for it because there is no risk factor involved.
Can be opted for Multiple Purposes
Personal loan is a multiple purpose Loan. This can be availed for any purpose which you don’t need to mention while taking it. It can be taken for any personal need as to refinance your business, for higher education of your child, for a family vacation, for any medical emergency or even for buying gadgets. There is no Limitation to use it. You can use it where ever you want and the way you want.
The documentation involved in Personal Loan is very limited. As discussed above personal loan is the one where no collateral is required. Hence, no documents regarding property and all needed to be verified. As a result of this the processing of a personal Loan doesn’t take much time.
The processing of Personal Loan is very fast. With some of the top Banks like HDFC a personal loan can be approved within 10 minutes whereas Finance Buddha offers you Personal loan within 24 hours. So, you can rely on this loan in case of any financial emergency.
Large Loan Amounts
When you go for a personal loan, you can opt for a large amount of money as the loan amount. Generally with a DSA like us one can take from a minimum of INR 50,000 to a maximum of INR 10,00,000. Isn’t it amazing? Getting this much of loan without any collateral.
Affordable Interest Rate
Personal Loans comes with affordable interest rate. Many of us may think that the interest rate is high as compared to that of some other loans. But personal loan is the only loan which comes to you with a flexibility to use and where no collateral is required. All these factor increases the risk factor of the bank hence to reduce their risk the interest charged is somewhat increased and this is fare enough.
Top Banks for Personal Loans
- ICICI Bank: It has attractive scheme along with reasonable interest rates.
- HDFC Bank: It offers you Personal Loan at low-interest rates with or without security.
How to Select the Right Personal Loan?
Comparing and then choosing a best personal loan provider is the most important thing, it is essential to understand the way they it works, interest rates of different bank, types of loans offered- secured/unsecured, fixed and variable, line of credit. You can go through the bank’s application checklist and look and compare the products based on their ratings. Just visit Finance Buddha website to compare what is being offered by different banks, choose among the top five, then bring down your list to top 3 and then to the bank one that offers the best personal loan according to your criteria.